Japan Exchange Group is to run proof-of-concept tests of the use of distributed ledger technology in low volume markets in conjunction with IBM.
The Japanese exchange trading markets are following in the footsteps of the Australain Securities Exchange and Nasdaq, which last week advanced plans to test the use of blockchain technology for post-trade settlement and proxy voting respectively.
In a statement, JPX says it will conduct PoC test in cooperation with IBM Japan to "evaluate the limits and possibilities of the technology in markets that have low transaction data volume".
The work will be based on the framework provided by the Hyperledger Project, a Linux Foundation-led initiative which has secured the backing of 30 banks and financial infrastructures to build a cross-industry open standard for distributed ledgers. IBM itself has contributed 44,000 lines of code to the project.
JPX is taking a cautious approach to the project, admitting: "There are issues to be resolved in the technology, and it will need to be continually verified and improved before actual application in financial business operations."
Separately, IBM has announced that it plans to begin inhouse testing of the use of distributed ledger technology in its hardware leasing business, in cloud-based services and for RFID scanning in Internet of Things. The company is also investing in the creation of a network of 'IBM Garages' in London, New York, Singapore and Tokyo to showcase the technology to customers in various industries.